Should You Add Toro Company (TTC) to Your Portfolio?

Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their rally in the third quarter, with US stocks gaining over 8% as measured by the Russell 3000 Index. Small-cap stocks experienced the strongest quarterly performance, rising by more than 12%, whereas large-cap stocks increased by about 8%, and mid-cap stocks saw a gain of 5%. The strategy underperformed the Russell Midcap Index in the third quarter, returning 4.49% net vs. 5.33% for the Index. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Diamond Hill Mid Cap Strategy highlighted stocks such as The Toro Company (NYSE:TTC). Headquartered in Bloomington, Minnesota, The Toro Company (NYSE:TTC) designs, manufactures, markets, and sells professional turf maintenance equipment and services. The one-month return of The Toro Company (NYSE:TTC) was 13.21%, and its shares lost 0.74% of their value over the last 52 weeks. On December 30, 2025, The Toro Company (NYSE:TTC) stock closed at $79.51 per share, with a market capitalization of $7.78 billion.

Diamond Hill Mid Cap Strategy stated the following regarding The Toro Company (NYSE:TTC) in its third quarter 2025 investor letter:

“Though markets have continued rising throughout the year, we have continued finding individual companies whose prices we believe are not reflective of their long-term growth outlooks. Accordingly, we initiated several new positions in Q3, including The Toro Company (NYSE:TTC), Equitable Holdings, Cooper Companies and Revvity.

Toro Company is a leading provider of equipment for turf and landscape management, snow and ice management and underground construction. It has leading market share and strong distribution and service networks that incentivize customers to replace like for like, generating a strong revenue source for the company. Amid a challenging macroeconomic environment and bloated channel inventories, recent results have been soft — however, we believe the long-term fundamentals remain intact and expect the company to generate solid results over the next 5 to 10 years.”

In another article, we covered The Toro Company (NYSE:TTC) and shared LRT Global Opportunities Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.